Global airfreight volumes, in terms of freight ton kilometers (FTK), grew 11.8% in July year-over-year. This is nearly 4 times the annual average taken over the last decade. Growth has continued to mirror global trade and export orders, which has seen an increase as inventories needed to be stocked to meet new demand. However, the Purchasing Manager's Index (PMI), which has consistently been a strong indicator of airfreight activity, has been forecasted to taper off now that inventories have been replenished. While this predication calls for a slow down in the unusual double digit growth experienced thus far, the expectations for the growth still remains highly positive.

Space capacity increased at nominal rates, improving the cargo load factor, and resulting in a demand surge for aircraft space. Origins such as Hong Kong and Taipei are experiencing space issues with carriers overbooking cargo and are expecting the situation to become more critical in mid-September. Airfreight rates are expected to increase 15-20% from TPE airport specifically.

To ensure that your shipment requirements are met, and costs are managed effectively, it is important that you discuss your needs with your sales representative in advance.

Written by Thomas Marano, National Airfreight Business Development Manager